The FINANCIAL — The net international investment position (IIP) of Georgia amounted to -17.9 billion USD (-42.9 billion GEL) for December 31 2015. This is -128.6 percent of GDP of the last four quarters. This figure has deepened by 515.2 million USD and by 499.1 million USD compared to the fourth quarter of 2014 and the previous quarter records consequently. Transactions, price and other changes were negative, while the exchange rate changes were positive during the quarter.
International assets increased by 190.5 million USD during the quarter and by 459.0 million USD annually. Total assets amounted to 6.9 billion USD (16.6 billion GEL) by the 31st of December 2015.
Liabilities increased by 974.3 million USD compared to the end of the fourth quarter figure of 2014 and by 689.6 million USD compared to the previous quarter’s figure. Total liabilities amounted to 24.9 billion USD (59.5 billion GEL).
The Gross External Debt of Georgia Amounted to 15.0 billion USD as of 31 December 2015
Gross external debt statistics are harmonized with BOP statistics. They include both public sector (general government, public corporations and national bank) and private sector (banking and other sectors) external debt. External debt statistics are compiled according to the methodology provided by the IMF’s “External Debt Statistics: Guide for Compilers and Users” (2003).
The gross external debt of Georgia amounted to 15.0 billion USD (35.9 billion GEL) as of 31 December 2015, 107 percent of the last four quarters GDP. During the fourth quarter of 2015 the gross external debt of Georgia increased by 357.0 million USD. Out of that 441.1 million USD increase was due to transactions.
Public sector external debt amounted to 6.0 billion USD (14.5 billion GEL) or 43.3 percent of GDP. Out of which, the debt of the general government amounted to 4.4 billion USD (10.5 billion GEL) or 31.5 percent of GDP; External liabilities of the National Bank of Georgia amounted to 219.2 million USD (525.1million GEL) or 1.6 percent of GDP; And the bonds and loans of public enterprises were correspondingly 782.5 million USD (1.9 billion GEL) 5.6 percent of GDP and 650.3 million USD (1.6 billion GEL) 4.7 percent of GDP.
Banking sector external debt amounted to 2.9 billion USD (7.1 billion GEL) or 21.1 percent of GDP; Other sectors’ external debt stood at 4.4 billion USD (10.6 billion GEL) or 31.8 percent of GDP; While 3.0 billion USD (7.2 billion GEL) or 21.5 percent of GDP was the intercompany lending. 94.7 percent of the gross external debt of Georgia was denominated in foreign currency.
The net external debt of Georgia amounted to 9.4 billion USD (22.5 billion GEL or 67.3 percent of GDP) as of 31 December 2015. Net public sector external debt was 3.5 billion USD (8.3 billion GEL or 25.0 percent of GDP).
External liabilities of the National Bak of Georgia decreased by 6.7 million USD, out of that, transactions led to decrease of the debt by 3.8 million USD. By the end of the fourth quarter of 2015, the external debt of the National Bank of Georgia amounted to 219.2 million USD, of which 199.5 million USD are Special Drawing Rights (SDR)1 which have no maturity date, therefore there is no obligation to repay them as long as Georgia is a member of the IMF.
Balance Of Payments Of Georgia (IV Quarter 2015)
Balance of Payments statistic is compiled according to the methodology provided by the IMF’s “Balance of Payments Manual, Fifth edition”.
The current account deficit amounted to 522.1 million USD (1.3 billion GEL or 14.2 percent of the same period GDP) in the fourth quarter of 2015.
The negative balance of goods is the major contributor to the current account deficit. Trade of goods deficit decreased by 6.9 percent annually and amounted to 1.2 billion USD (2.8 billion GEL). Exports decreased by 21.7 percent and imports by 13.4 percent annually. Excluding the granted hepatitis C elimination medicines from imports, the imports of goods annual reduction was 19.2 percent.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 5.2 percent, while imports of services decreased by 8.0 percent annually. The balance of travel services is the largest positive component of services account. Export of travel services increased by 9.0 percent annually and amounted to 427.7 million USD (1.0 billion GEL).
The positive balance of the current transfers partially offsets current account deficit. Credit of current transfers increased by 13.7 percent annually totaling 429.6 million USD (1.0 billion GEL). The growth was driven by the government sector transfers that increased 6.5 times annually, mainly due to the international aid received for hepatitis C elimination program (130.7 million USD). Meanwhile, current transfers of the other sectors decreased by 22.4 percent.
Net foreign direct investments, significant item for financing the current account deficit, amounted to 275.8 million USD (661.3 million GEL)1 accounting for 7.5 percent of the fourth quarter GDP. The largest investment inflows were directed to financial sector and health care.
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